The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

ABM Industries (ABM) is a stock many investors are watching right now. ABM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.85. This compares to its industry's average Forward P/E of 35.61. ABM's Forward P/E has been as high as 15.99 and as low as 11.75, with a median of 13.99, all within the past year.

ABM is also sporting a PEG ratio of 2.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABM's industry currently sports an average PEG of 5.73. Within the past year, ABM's PEG has been as high as 2.96 and as low as 2.58, with a median of 2.68.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ABM has a P/S ratio of 0.39. This compares to its industry's average P/S of 1.07.

Finally, our model also underscores that ABM has a P/CF ratio of 17.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.59. ABM's P/CF has been as high as 19.64 and as low as 6.82, with a median of 12.38, all within the past year.

These are only a few of the key metrics included in ABM Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ABM looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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